Page 112 - Aug 2019 BOG Book_Neat

Exhibit D
(Continued)

Note 13 - RELATED PARTIES (Continued)

The Association and the Louisiana Client Assistance Foundation (LCAF) are separately
functioning organizations sharing a common mission. The Association's Board of
Governors appoints the LCAF Board of Governors. No financial support was provided
by the Association to LCAF during the years ended June 30, 2018 and 2017.

Note 14 - INCOME TAXES

The Association is exempt from federal income taxes under Section 501(c)(6) of the
Internal Revenue Code and qualifies as an organization that is not a private foundation as
defined in Section 509(a) of the Internal Revenue Code. It is exempt from state income
taxes under Section 121(6) of Title 47 of the Louisiana Revised Statutes of 1950. Net
operating profits from unrelated business income, if any, are subject to federal income
tax. The Association had taxable unrelated business income for the years ended June 30,
2018 and 2017 of approximately $76,000 and $67,000, respectively.

Accounting principles generally accepted in the United States of America require
management to evaluate tax positions taken by the Association and recognize a tax
liability (or asset) if the Association has taken an uncertain position that more likely than
not would not be sustained upon examination by the Internal Revenue Service or other
taxing authorities. Management has analyzed the tax positions taken by the Association,
and has concluded that as of June 30, 2018, there are no uncertain positions taken or
expected to be taken that would require recognition of a liability (or asset) or disclosure
in the financial statements. The Association is subject to routine audits by taxing
jurisdictions; however, there are currently no audits for any tax periods in progress.

Note 15 - COMMITMENT

In 2005, the Association entered into an agreement with Fastcase.com, Inc. ("Fastcase"),
to provide members of the Association with unlimited access to the Fastcase legal
research system. Effective in June 2010, this agreement was amended. The amended
agreement had a term of five years and now automatically renews until such time either
party elects to terminate the agreement. Fees under this agreement totaled $124,644 for
each of the years ended June 30, 2018 and 2017.

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